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situation room." for our international viewers world vort next, in north america john king usa starts right now. >> good evening. tonight the brutal murder of an 8-year-old boy shocks a conservative jewish enclave in new york. >> and children will usually trust someone who looks very similar to their own father or to most of the people in their synagogue. >> plus high stakes negotiations resume at the white house, but no reports of tempers flaring. look to the senate for a new proposal to break in logjam. we'll keep our eye on the senate. but what would happen if the government defaulted on its loans? would it impact you? >> interest rates will rise. we'll be back in recession. of course, we already have a 9% plus unemployment rate. we're starting from a weak position. unemployment will rise to the double digits. we'll all pay a very significant
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price. first the british tabloid hacking scandal catches the attention of law enforcement here in the united states. a source tells cnn the fbi is investigating whether or not journalists working for rupert murdoch's news corporation illegally gained access to phone records of the victims of the september 11th attacks. one alleges that news corporation reporters tried to access phone records using bribes or illegal computer hacking. the new federal investigation comes as murdoch defends his company's handling of the scandal. in an interview with "the wall street journal" which is part of his media empire, he says that he and his management team have made, quote, just minor mistakes in their handling of the scandal. suzanne candiotti live tonight with details on just what the fbi is investigating. >> reporter: the fbi is calling this a high priority and is digging in its heels. this is going to be a broad ranging investigation.
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in fact, they're going to be looking into some of the very same things they were looking at in the uk. looking at phone records, looking at voice mails here in the united states, to see whether any employees or associates may have hakd into these records to see if they could get any information about 9/11 victims or their families, john. >> susan, preliminary inquiry. do they have any evidence or suspicions and complaints? >> reporter: they do have suspicions and complaints, to say the very least. in fact, there have been some reports that a former police officer, investigator, was asked by news corp, there is a news story to that effect, to look into phone records but that he said he wouldn't do it. they do have some things to work with. certainly there have been a wide ranging number of calls by members of congress to look into this and 9/11 families as well. democratic senator robert
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menendez of new jersey is among the members of congress demanding answers whether 9/11 victims were targets by sleazy and potentially illegal reporting tactics. senator, let me just start simply here, you've demanded the attorney general look into thp again, have you heard or seen any firm evidence or are you just trying to connect the dots, you see something horrible that happened overseas and you just worry it could have happened here? >> i see a published report in the "daily mirror" that says that the same entities that got the british prime minister's information, the royal family, victims of crimes in great britain and others attempting to do the same thing with an investigator here in the united states. i see a member of parliament speak to that as well. and i see scotland yard having an investigation of over 5,000 names and several thousand phone numbers. that adds up to me to sufficient enough concern to protect the families of 9/11 and make sure that either this was not true,
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in which case they can have that sense of security, that their messages from those loved ones on their final days does not in any way revealed. or if it is true, that it should be prosecuted in the united states because access to phone record, unauthorized access to them is punishable under federal law. >> senator jay rockefeller says my bet is we'll find criminal stuff here. you share that view? >> well, i don't want to jump to conclusions, john, but i do want a vigorous review. i see there are some published reports that the fbi is in fact pursuing a review to determine whether a full investigation is necessary. i welcome that. that's what i asked the justice department to do. om of us that come from the new york, new jersey area, we lost several citizens on that fateful day. he's joined in similar call.
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he understands the fwreef of these families. i'm glad to see that together we can get to the bottom of this. >> you asked the prime minister's office for help, to share any information that comes to your attention in the british inquiry. you've had tensions with the uk over the lockerbie bombing in the past. have you received assurances of full cooperation. >> i haven't had a chance to see a response to my letter to mr. cameron, just sent out today. i suspect we're in common cause for this. we want to make sure the citizens are preserved and the victims of september 11th where there were british citizens as well as u.s. citizens who lost their lives. >> mr. murdoch gave an interview to "the wall street journal," a newspaper he partly owns. we have a reputation of great good works in this country referring there to the uk. does that sit right with you? we have a reputation of great good works?
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>> well, of everything i've read, john, the "news of the world," the invasion of privacy of the british prime minister about his son's illness, the royal family, crime victims, a young child. that isn't in my mind real journalism, that isn't great good works, that isn't how you go about selling nups. >> we'll keep in touch as this one goes forward. if there are leads to follow just how would an investigation into possible hacking nearly a decade ago work? mark rash has an expertise in cybercrimes. this is ten years or two months shy of ten years. if someone tried to hack into e-mails, if there's a paper trail of a reporter saying i tried to do this, somebody helped me to do this, but if you go back to do the forensics, can you still do that? >> it all depends on what logs the phone companies have kept.
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some are evidence of how the people got in. did they con their way in? you wouldn't have a record of that. but a good chance they'll have record of the unauthorized access to the account. >> back to your days as assistant u.s. attorney, the fbi comes to you, we need some forensics work done, how do you do it? >> you go back to the companies that were allegedly hacked, the phone companies, and see what kind of log thes have. if they have maintained those logs and ten years out, they probably haven't, then you hit pay dirt. then you say were your phone records ever tapped. >> and how is the technology different now? in the uk we're watching some of these done in the current day, the royals, recent crime victims. if this were ten years ago the focus would be on sleazy maybe illegal conduct by a reporter, but what kind of help would they
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need to have to get access to this? >> to listen in on voice mail you need the user id and password. ten years ago people had their voice mail at home. they had a cassette tape at home. everybody was moving to digital voice mail stored on a server. you log into the server and listen to the voice mail. >> based on your testimony, if the fbi believes there's smoke given the time, given the technology changes, that the phone companies may not have the records, can you prove fire? >> maybe not. but you can prove connections. many of these were through interviews conducted in the uk or persons admit, yes, i was hired by this company to go ahead and do this. >> as you watch this play out, suspicions of 9/11 victims or just what you've seen in the uk, what sort of bells have gone off in your head how this works? >> if you're trying to investigate this in the u.s.,
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first thing is find the crime in the united states. you need to find whether somebody hacked into a computer, phone system, lied, cheated, committed fraud in the u.s. then you basically want to follow the money as well. if there were people paid to do this, one way is to follow the money. >> follow the money. mark rasch, thank you very much. the president goes back to the table with congressional republicans. will it translate into a bigger mortgage payment four? later the suspect in a gruesome new york city child murder is hauled into court. to keep in balance after 50, i switched to a complete multivitamin with more. only one a day women's 50+ advantage has ginkgo for memory and concentration, plus support for bone and breast health. a great addition to my routine. [ female announcer ] one a day women's.
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two important developments to bring you. republicans principally to get an increase in government's debt ceiling and the republicans want to package up spending cuts to go along with it. we go jessica yellin. >> hi, john. coming now news from a senior administration official that the president will address reporters tomorrow and take questions here at the white house. no doubt part of this effort to push forward on these debt negotiations and get some sort
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of a deal. also word this afternoon that there will not be a meeting here tomorrow at the white house after this deal broke up. he's charged this group with going back to congress to see what kind of deal these leaders can work out, what kind of votes they can get. come back to him and tell them where they think they can cobble together the votes to have some sort of final deal over the next 24 to 36 hours. he wants some sort of progress to be made. if he doesn't hear from them, he might call another meeting over the weekend. >> jess, stand by for me. we all have a presidential news conference. remember last night we told but a new proposal from mitch mcconnell that would allow the president to raise the debt ceiling. he would then be required to submit spending cuts to congress. many complained there's no guarantee the spending cuts would take effect. they're working on what i'll call the mcconnell plus, the plan that gives the president the authority to unilaterally raise the debt ceiling but
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they'd form a commission. members of congress would be the only members. house and senate members would come up with a list of proposed spending cuts -- closing military bases around the united states. jess, the president has wanted to broker this deal. but this proposal comes in part because of frustration in congress, especially among the two senate leaders. it started with republican mitch mcconnell, harry reid the democrat, now involved as well. they're trying to figure out if the president can't broker this, maybe we can find a plan "b." >> i'm told this came up in the meeting today but it was not discuss discussed democrats say it is seen as a fallback option but it's still not part of the discussion today they're still hoping they can get to what the president is still calling the biggest deal possible. he talked to them about going for something in the range of $2 trillion if not more. he's still hopeful in the next
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window through this weekend these leaders can find something that's bigger than the mcconnell/reid package you just discussed, but they're still thinking of it as a back pocket option. >> back pocket option as jessica yellin puts it. we'll cover the news conference tomorrow. many conservatives don't like it but don't count on a backup plan being pushed by mitch mcconnell. he proposes giving the president unilateral power to raise the debt ceiling three times over the next year and a half. here's the part conservatives don't like, there's no guarantee the spending cuts would actually take place. bob cork er calls it typical washington. >> we know that our leadership has concocted a scheme where folks on the other side of the aisle can allow the debt ceiling to increase and continue to appeal to their constituencies for the 2012 election and on our
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side we can continue to call spending to be an issue for us in the election. by virtue of concocting this scheme, we're not going to make any tough decisions. >> is that right? is the endgame here just another decision to push big problems down the road? let's begin there with fareed zakaria. you would think the possibility that the united states would default on its obligations for the first time in history you would think would bring a grown-up conversation to washington, it would be that. but? >> it's truly bizarre, john, because what it seems that republicans are not focussing on is the fact that were the united states to default, were there to be a danger it would default, america's interests costs would go up dramatically. if we were to, say, have a 1% rise in our borrowing costs, that markets got scared that we were not going to make good on our payments and our borrowing
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costs went up 1%, that's $150 billion more that we have to spend every year on our interest payments on our debt. and this is very important. if we do this for a week or two and still resolve things once markets get scared, it takes a long time for those interest rates to come down. just look at any case in history where there has been a default. once you have a crisis, even if you settle your book, you do what you need to do, you make the tough decisions, markets are scared. capitalist cowardly, as the saying goes. it takes a long time for those costs to get down. what the republican party is doing now with playing chicken with the credibility of the united states has the almost certain effect of increasing our debt and deficits substantially for years to come. >> we understand the president did a very tense meeting yesterday. essentially was trying to have a back and forth with eric cantor to the point where he said,
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fine, this could bring my presidency down, but i'm not going to do any more business with you guys unless you give. >> to view the stakes this high for the president, if we have a default, it would obviously hurt the recovery, could it bring down president obama? >> it could. look, in the short term there's no question that the public will most likely blame the republicans because it is clear that they are the ones who are literally not willing to move an inch. the president has put medicare on the table, he's put social security on the table. he's willing to do $3 of spending cuts for every dollar of tax increase. he's is asking the republican party to give him something so that you can get a compromise. but ultimately people vote for a president based on how the economy is doing. if there's good political science on any subject, it is this. if the election of 2012 will be a referendum on the economy and the economy stinks to high heaven, it hurts barack obama terribly. so he has to play this very delicate game where he needs to
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make clear that it is the republican party that is not compromising. and i think the facts are that that is the case. he can't let the economy fall off a cliff just to prove that point. >> let's take a look at how the world is viewing this. specifically -- i don't know if this is ironic or delicious or both, but the chinese of all people -- china holds a trillion dollars in u.s. debt. we hope the u.s. government adopts responsible poll sis and measures to guarantee the interests of investors. china obviously one of those investors. talk about that and then more broadly, how this looks to the world. >> i think the chinese government is actually being very responsible. if we held a trillion dollars worth of yuan, china's currency, and they were to be playing this insane game of political partisanship, we would be complaining. the chinese have been very quiet so far. by the way, one of the reasons they're quiet is no one wants to raise the panic and drive those
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interest rates up. once we drive those interest rates up, they will not come down easily. the global financial system rests on one sort of bedrock, and that is that u.s. treasury bills are the safest, most liquid, cheapest form of debt in the world. if that changes, who knows what it means? you know, people talk about lehman brothers and this being like lehman brothers, actually, this is a hundred times more complex and lethal. lehman brothers was a relatively small investment bank that had a big balance sheet. here you talk about the full faith and credit of the united states of america, the holder of the reserve currency of the world. >> fa rereed zakaria, thanks. >> pleasure. still ahead, how you'd be affected by the u.s. government if the u.s. government actually defaulted on its debts. next moammar gadhafi has something new to say. e dry, damr a whole new life! with aveeno nourish plus moisturize. active naturals wheat formulas target and help repair damage in just 3 washes.
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welcome back. here's the latest news you need to know right now. we now have a time for the news conference president obama will hold on the debt ceiling deficit, 11:00 a.m. eastern. cnn will have live coverage. minnesota's governor and legislature have reached an agreement to end the government shutdown within days we're told. a new round of defiance from moammar gadhafi. in an audio message he declares i will remain with my people and with my firearm until the last drop of my blood.
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dick cheney, bill clinton and barbara bush were at the memorial service for betty ford. roger clemens signed baseballs but no questions from reporters were answered as he left a washington courthouse today. his perjury trial ended in a mistrial. when we come back, in new york city every parent's nightmare. an 8-year-old boy befriends a stranger and is killed. asily. asily. it flows with clean water. it makes its skyline greener and its population healthier. all to become the kind of city people want to live and work in. somewhere in america, we've already answered some of the nation's toughest questions. and the over sixty thousand people of siemens are ready to do it again. siemens. answers.
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in new york tonight an 8-year-old boy's parents are living through every parent's nightmare. look at this huge outpouring of grief. leibby kletzky was just beginning to be independent. the surveillance video of him walking the seven blocks from his summer day camp and where he was supposed to meet his parents. he asked a man for directions. today that man is in court. prosecutors say he's confessed to killing the boy and dismembering his body. you're tracking this case. tell us about this arraignment today. >> to give you a sense of the outrage considering this case, consider this, even the prisoners in their holding cell were yelling things at levi aron as he was brought in to be charged with third degree murder. these prisoners were calling him murderer and other names. he outlines how he killed leibby kletzky. this suspect didn't say a word,
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didn't look at anyone. the lawyers for aron say that their client is hallucinating and is hearing voices and should be on a suicide watch. police outside the courthouse were able to confirm that aron was indeed at a wedding on monday night, the same night the boy disappeared, but it's unclear if the boy was with him as aron does claim. he tells police in his confession, that when they got back from the wedding the boy fell asleep watching tv, was still sleeping in his apartment on tuesday morning. aron went to work and aron says when he went back to work, the plan was to return the boy to his parents. but when he saw all the attention, all the searchers, all the media, he panicked and decided what to do. he tells police he gave the boy a tuna fish sandwich, smothered him with a towel and then cut up the body in an effort to hide this crime. >> horrible. sean henessey. appreciate your help with the reporting tonight. a short time ago i spoke to a community leader who is trying to come to grips with this tragedy.
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>> and children will usually trust someone who looks very similar to their own father or to most of the people in their synagogue. >> we have more of that interview, i think, if we can try to get it set up for you. in the meantime, let's talk to c candace long. when you look at this case and i want to go to the map, i want to show our viewers here, we're talking about a tight knit community and a very small space in which this happened. leibby kletzky left his day camp. in today's society you have these surveillance cameras. you see this young boy -- hard to look at. wiz backpack walking the streets. then in the evening, he's seen at the dentist office here with the suspect, levi aron who was later arrested a couple days later up in here. when you see this tight space, what goes through your mind as
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someone who has profiled major cases like this? >> well, this is unlikely to have been a crime that could have been pulled off as easily in downtown nebraska. this is new york city. hundreds of thousands of people. much easier for the offender to kind of blend in and this child was used to be surrounded by lots of people. so i can see why it was pretty easy for aron to take the boy. >> and if you read the confession, which police have now authenticated, mr. aron write, i was still in panic. he's confessing to having the boy in his home. i was still in panic and afraid to bring him home. that's when i went for a towel to smother him in the side room. he fought back a little bit until eventually he stopped breathing. he described what he did to the body. we will not repeat it here tonight. then he ends -- and i find this -- i don't know if curious
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is the right word. he understands that this may be wrong and i'm sorry for the hurt i've caused. may be wrong? >> i do have a clinical background, i was a psychiatric nurse for ten years. the confession seems to be rather disjointed and reading it and he says, i panicked a few times and this may be wrong. what that tells me is that there's a good -- it just impressed me as something that someone suffering from a major thought disorder, disorganized thinking also known as schizophrenia. there's no report i read that he's possibly hearing voices and delusional. plus you look at the act itself. first of all, in terms of getting rid of the body, if he did panic, all he had to do was put the body in a suitcase and take it all the way. he didn't do that. what he did and probably this whole thing was something that had nothing to do with panicking. it had to do with a fantasy who he'd had for many, many years.
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>> based on your experience, is this a young boy leaves camp, gets a little disoriented, does asks a stranger for directions and this all unfolds or was this someone -- i'm talking about the suspect now, was this looking, premeditated? >> he may not have been looking at this moment but an opportunity to live out a fantasy that he may have been harboring for years presented itself when this little boy went up to him and asked for directions. i think we'd all agree the vast majority of people if a child came up to them and asked directions, it will never cross their mind to take the child and kill them. but that did seem to have happened here. and i don't think it's something that he just thought of that moment. and we've talked to killers, we know how these things happen. >> candice long, criminal profiler. appreciate your help. >> you're welcome. >> now back to the conversation i had a bit earlier today with the new york assemblyman do
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dov hikint. let me ask you the impact in this community. you have represented for three decades now. anything like this, any crime like this happen during this period of time? >> absolutely not. in the 29 years that i've represented this neighborhood, we've had things happen but nothing that even closely resembles this absolute horror. people in my community and way beyond, this is not any more about borough park, brooklyn, new york, when a child leaving day camp like millions of children all over, his mother waiting two blocks away to take him home, disappears and ends up meeting someone who commits murder and a very violent murder, it has shocked my community, it has shocked new york, and i think it has shocked the country and even beyond that
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that an 8-year-old, so innocent, that someone is capable of committing the horror that was committed here. >> a woman who lives on the same block as this suspect had told police that mr. aron had once approached her son and that she was nervous about that, tried to lure him into his car. was he known in the community as a problem or as a threat? >> absolutely not. that's part of the problem. now people are coming forward saying i remember this and this incident, but never -- no one ever really followed up. and there's no question, you know, here you have a 35-year-old man. what is he doing with an 8-year-old child? i mean, what were his motives? i think it's pretty clear. he wasn't taking him to toys "r" us or to play basketball with him or anything like that. clearly his motives are very, very, very clear. in my community, most of the people in borough park, you know, are hasidic.
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they wear long beards and have soo side curls and dress in a particular way. children will usually trust someone who looks very similar to their own father or to most of the people in their synagogue, et cetera. we have to be aware that just because someone looks okay to them doesn't mean they are. you know, perpetrators, people who do these horrible things, they often look no different than you and i. and we have to really protect our children. i mean, this tragedy is beyond comprehension. i met with the parents this afternoon. i actually met with the grandparents, the pain of a grandparent, of a mother, a father losing a child in this particular way with the gruesome details, i don't wish this on my worst enemy. >> and to the point you just made about the close knit community and people perhaps reflexively trusting people who look like them, who worship like
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them, who live with them. when you hear reports people afterwards saying this guy had acted strangely before. this guy tried to lure my son into his car before, do you worry that some people kept that to themselves, did not report it to the police, did not report it to community leaders because they thought he's one of us, it can't be true? >> yeah. look, this is a problem that we're first facing in our community. we have an amazing community, a wonderful community. the way people came together in my community, thousands of people volunteering during the search. it was something spectacular, but at the same time, we have to face that we have people in our community as other communities have, people who want to do terrible things to children. and you can't sweep it under the rug. you can't pretend it doesn't exist. you can't be embarrassed. you've got to deal with it. >> you met with the parents and the grandparents. i'm just wondering on their thoughts, do they think that they had done this just right or
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do they now question their own path with their son. >> the grandparents with the mother, they think they did absolutely nothing wrong and i totally agree. but i can tell you that the mother doesn't feel that way. her son would come home with the bus from camp every single afternoon. and she's thinking like, my god, i'm responsible. i should never have permitted him to walk. i don't agree. but how can a mother feel differently knowing, knowing what happened to her child, how her child was murdered. 8 years old. and the violence that was committed against that child. so the mother, again, i don't wish it on my worst enemy. >> assemblyman dov hikind. we wish you and your community and certainly the family the best in the days ahead and they're in our thoughts and prayers. thank you, sir. >> thank you, john. when we come back a closer look at just how you might be hurt if the government defaults. here at quicken loans,
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take a closer look now at the stakes of these negotiations with the president and congressional leaders about the debt and the deficit. here's one way to look at it. if you look at this in past years the government is due to hit the debt ceiling august 2nd. last year took in $194 billion in august had $342 billion in bills therefore 159 billion in deficit spending. here's the projection for this year. slower economy so less money coming in. 172 billion. about 306 billion in bills.
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that would leave the government about $134 billion shy. so let's say you had to make the choice. here are the things the government spends most of its money on. let's just say the government ordered the list up this way, started making the payments. you pay the interest, you pay social security. you get down here to unemployment, bang, you are out of money. if you look at this, maybe you're a veteran, on active duty military. you might view this as politicians behaving badly, just a debate in washington, not true. this is about you. >> everyone's going to get nailed. because what it means is the stock prices will fall, the dollar will fall in value, interest rates will rise, we'll be back in recession. of course, we already have a 9% plus unemployment rate. we're starting from a very weak position. unemployment are rise to the double digits. we'll all pay a very significant price for that action. >> yet if you listen in washington, there is a debate. the majority say if you default, it's a big deal. but there's a vocal minority that says wait a minute, this
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could all be scare tactics. >> i think it would be calamitous outcome, it would create a very severe financial shock that would have effects not only on the u.s. economy but on the global economy. >> that if congress fails to raise the debt ceiling by $2.5 trillion that somehow the united states will go into default and we will lose the full faith and credit of the united states. that is simply not true. >> who is right? >> chairman bernanke, i think it's pretty clear, he's got it right. if we go down that very dark path and don't raise the debt ceiling by august 2nd, we are going to pay a very serious price. so i really don't think there's any question here. >> part of this conversation as to whether we get a deal is republicans say with 9.2% unemployment, a very fragile recovery, the last thing you want to do is have any tax increases. are they right or can this deal have some modest tax increases that cannot affect what republicans worry about in job
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creation? >> they're right. there should be no tax increases this year. i would advocate no tax increases in 2012. the recovery is too fragile. but this economy can digest tax revenue increases. my preference would be not to raise tax rates but to reduce or eliminate the tax credits and deductions in the tax code, broaden the tax base, raise more tax revenue. that would be very therapeutic to the economy going forward. but no tax increases this year or next. and i don't think anyone's arguing that we should have that. >> what's your sense of how this is being digested both in u.s. markets and around the world? for the last week or so, markets have been pretty tame saying okay, they're yelling at each other, they're being typical politicians, but they'll figure this out. then with the fed chairman's warning this morning the markets seem to think, uh-oh, maybe they won't work this out. there's a tense meeting at the white house yesterday. what's the tipping point if they don't see progress going toward a deal? >> you're right. the markets had been very calm up to this point because if
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history's any guide, we've been through lots of close calls in the past and just a few months ago we had a very close call with regard to closing down the government. and we always come through at the end. so i think that investors rightly believe that when push comes to shove we're going to get it together and raise the debt ceiling on time. now, having said that, if we get into next week and there's no agreement and it doesn't look like one is coming, with each passing day we'll see more investors start attaching a possibility to not raising the debt ceiling in time, the markets will become increasingly unsettle unsettled. but the end of july, the markets will be palpably unsettled. we'll see interest rates rising and by september, we'll see turmoil in the markets. >> august 2nd. you can see highlighted days after where the government would have to come up with big money to make payments including social security $23 billion the very next day. one of the issues is you have freshmen in the house who just
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ran on deficit spending. they say stand up to the president. among the voices who agree with them, marco rubio of florida. senator rubio joins us from capitol hill. senator mcconnell, your leader's plan he calls it plan "b" or maybe it's plan "z." is it smart or surrender? >> i understand why he's doing it. he's a minority leader and trying to position his caucus in the best way possible in case things don't work out. it's not something i can support because i've clearly stated this is a chance to solve the real problem here. the real problem is not the debt limit, the real problem is the debt. the fact that this country continues to spend 40 cents out of every dollar. look at ireland. ireland their debt just got downgraded to junk. it wasn't because they refused to raise their debt limit, it's because they can't afford to pay back their lenders. >> that was a passionate case for deficit reduction, senator. so why, as some would ask or
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maybe this is a better way to put it -- do republicans have a problem saying yes to that grander deal the president was willing to put on the table which would get you $4 trillion in deficit reduction over the next ten years for, yes, some revenue increases? >> i've never seen that deal. i don't know if you have. i don't think the president has ever released anything other than what he's said at press conferences. i've never seen paper on their deal, i've always believed in a grander deal. i want to us do a lot of things. i outlined that three months ago when i said we need to do tax reform and save medicare and social security and regulatory reform, we need a spending cap, a balanced budget amendment. i wanted us to do this months ago. i continue to say this is a great opportunity to do something really meaningful for the future of our country, but our compromise has to also be a solution. it can't just be a compromise for the sake of avoiding this for another day. >> so help us get to a solution then. could marco rubio support any solution that included some new revenues or is that off the table? >> no, i think there has to thes
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the new revenue come from? i think not from new taxes but from new taxpayers, from economic growth, from the additional of new jobs. i think tax reform will get us there. i think there's broad bipartisan support for tax reform, for simplifying our tax code, for getting rid of things that are part of the tax code that are the result of good lobbying and not good policy. but what -- our economy can't afford any tax increases right now. number two, it wouldn't generate more revenue. number three, it wouldn't solve the debt problem. the tax increases the president's talking about don't even buy us ten days worth of deficit spending but would kill a bunch of jobs. >> what's the problem or maybe the question better put is who's the problem in the white house negotiations? who to you need to change out maybe on both the democratic and republican side in your view to get this conversation headed toward a deal that's acceptable to you? >> i was talking to some of my colleagues today in the senate, including some democrats. i think on issues like tax reform, things that need to be done to save medicare and social security, i think there exists some consent. i don't know if politics is getting in the way or what it
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is. honestly, we need to begin to teal with this right now. i hope we can come up with something that's good for our country and dealth with the debt once and for all. >> you're known as one of the new tea party-backed members but you also have deep experience in legislative politics in the state of florida. would you walk across the to house side and say, we can find a reasonable, principled comp myself here and it might include some revenues? >> i think these reports that somehow the freshmen members in the house are against all the stuff are exaggerated and not true. i think there are plenty of freshmen house members that stand where i stand, looking for a solution and a comp myself but one that solves the problem, not one that makes it worse. when the president says we have to raise taxes, otherwise we're not going to move forward, that would make things worse, not better. i think that stuff about freshmen in the house that won't vote for anything, i don't think that's true. >> freshman senator marco rubio, appreciate your thoughts tonight. there's a nasty, polarizing fight in washington. one of the smartest thing at
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good political reporter can do is hit the road in america. my next guest joe kline is about to do just that. of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... for greater access to all the things you want, whenever you want them. it's the at&t network... and what's possible in here is almost impossible to say. it's the at&t network... ♪ [ cat meows ] ♪ [ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care about and save money with multi-policy discounts. are you getting the coverage you need and the discounts you deserve? for an agent or quote,
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for 3 months at no charge. president obama and congressional leaders won't meet tomorrow but the president has a news conference to talk about the debt and def sister negotiations. house speaker nancy pelosi just put out a statement saying house democrats stand with the president with a grand bargain. standard & poor's just warned it could lower the u.s. debt
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rating. all this maneuvering has big implications for you, your bottom line, and the 2012 wlaection campaign. joe kline, politics is a tunny business. nancy pelosi saying she stands with the president for the $4 trillion bargain. i think she doesn't think it's going to happen so you don't have to have medicare or social security cuts before her caucus. you're going out on the road, get out of washington, talk to real people. >> that's right. >> but when you watch this, i'll call it politicians behaving badly, what do you see? >> deja vu. kind of like 1995 when the republicans were about to close down the government and there was all this infighting within the republican party. bob dole going after newt gingrich. you're seeing it on a grander scale now with the boehner versus eric cantor and mitch mcconnell, who has always been a real political guy, not a policy guy, saying, we have to mind the policy here and not allow us to go past this debt ceiling. but i'll tell you what, john, it's driving me crazy.
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washington and new york are coat and tie kind of towns. and i'm not a coat and tie kind guy, i want to get back on the road. last september, i spent a month on the road and the best part of that trip was asking "time" readers and others to get in touch with me, have you meet me if you want, introduce me to people you respect, your co-workers, whomever. i want to do that again. if you really want -- i'm going to be leaving from loredo, texas, in early september. i'm going up to north dakota where they're having an economic boom. want to see what that looks like, right? and all along that route, right up the middle of the country, about a week in iowa, some time in arkansas, i want to go to joplin, missouri, to see how folks are recovering from the tornado there. if you are in any of those places and you want to set up a meeting with me, and i may have some interesting traveling guest celebrities with me, you can
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contact me at joe underscore >> quite the promo. smart advice to get out in the country. i was in joplin and i'm interested to see what you hear, how they're recovering. the first i don't of the of the obama presidency i touched them all with "state of the union." this is the 2008 map. one of the reasons we're in this fight now, you see blue in 2008. in 2010 this map went red. so it's the people you'll be talking to. this is important. they keep swinging back and forth. >> that's right. >> if you're going to start in texas, go to iowa, you've been in iowa, if you make it to the west, you can go on gowalla. you can see john king's 50-state tour, give you restaurant recommendations. fourth street cafe in sioux city, iowa, breakfast specials, you won't leave country. north dakota, one more, then i
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want to hear what you're looking for out there. here's tnt diner west fargo. milk shakes. the locals recommend milk shakes for breakfast. i'm not sure i recommend that. so you see the partisanship, the polarizing here in washington. what are your big questions? obviously this is a complicated 50-state puzzle. each state's a little different. you go out with what one big question? >> well, what do you think about what's going on in washington? what do you think of the president? what do you think of the republicans? but also,want to meet a lot of small business people on this trip. i want to hear about what kind of problems you're having inning to business these days. what does the economy look like from the bottom up? if you have a small business, contact me at joe underscore kline@timemagazineom. i'm getting the love doing these promos. i want you to come with me for a day or two. >> i'll meet you out there. you can sell cars if you can't do this. get in touch with joe kline. give him advice to come to your community. tell him what you think about what's happening in washington. give

John King USA
CNN July 14, 2011 7:00pm-8:00pm EDT

News/Business. John King. Daily political news and stories. New.

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